Cargill studies beef tallow for Brazil biodiesel as US tariffs bite

SAO PAULO, ‌June 16 (Reuters) - ​Cargill ​is studying the feasibility of using beef tallow to produce ‌biodiesel in Brazil, a trader for ⁠the firm said on Tuesday, as U.S. ‌tariffs have made exports ‌of the animal fat less attractive.

• The U.S.-based company does not currently ​use beef tallow, but has a project to assess its viability, ⁠trader Paulo Cardoso said at an event in Sao ​Paulo

• One of three biodiesel plants Cargill acquired from Brazilian firm ​Granol in 2023 ‌previously used tallow, indicating no operational constraints

• Soybean oil is ⁠Brazil's main biodiesel feedstock, while beef tallow ranks third nationwide

• U.S. tariffs on ⁠Brazilian beef tallow stand at 10% but could ​rise, meat packers association Abrafrigo recently said

• U.S. taxation "opened eyes" to the need to seek ‌out new markets for tallow, Cardoso said, noting Cargill's ‌Brazil unit previously acted as a ⁠major tallow exporter ‌to the U.S.

(Reporting ​by Roberto Samora; Writing by Fernando Cardoso; Editing by Sanjeev ‌Miglani)

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